Sherman Oaks Chapter 13 Bankruptcy Lawyers
Getting out from under a mountain of debt can be impossible, particularly if you have defaulted on your mortgage and do not have the income needed to catch back up. If you are in danger of losing your house or condominium due to foreclosure, Chapter 13 bankruptcy can help you save your home by creating an avenue to pay back creditors over a three to five year period. Similarly, Chapter 13 bankruptcy can be used to safeguard your other secured debts, such as your car, so that you retain your property while benefiting from a more manageable repayment structure. The Sherman Oaks Chapter 13 bankruptcy lawyers at Wadhwani & Shanfeld can help you regain your financial footing by working with the court and your creditors to come up with a plan that actually works for you.
Defining Chapter 13 Bankruptcy
Chapter 13 bankruptcy enables individual debtors to restructure their secured debt, such as a mortgage, when their debt has become unmanageable. While the individual or married couple’s debt is not immediately discharged in Chapter 13 bankruptcy, as opposed to Chapter 7 bankruptcy, a repayment plan is created for the debtor to pay back the debt in either a three or five year repayment plan. Any remaining debt after that time period is usually discharged, and at the end of the repayment plan the debtor owns their property without worrying that the bank will take it away from them. Furthermore, filing Chapter 13 bankruptcy will not ruin your credit score—a downside to filing Chapter 7.
Who is Eligible for Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is referred to as wage earner’s bankruptcy because the debtor must have a regular income to qualify for Chapter 13 bankruptcy. If your wages are irregular or you are currently out of work, Chapter 13 most likely will not work for you, as it requires your future wages to go toward paying off your debt. Other Chapter 13 bankruptcy qualifying elements include the following:
- The debtor’s total combined secured and unsecured debt is less than $2,700,000
- Debtor has not filed for bankruptcy in the last 180 days and been dismissed
- Debtor has received credit counseling from an approved credit counseling agency within the last 180 days
Call a Sherman Oaks Chapter 13 Bankruptcy Lawyer Today
No one defaults on their mortgage intentionally. Serious life circumstances, such as losing a job or coming down with an illness, can happen to everyone, and usually do at some point. Thankfully, Chapter 13 bankruptcy allows debtors to catch up on their mortgage, retain their good credit score, and manage their debt in a reasonable way through a long-term repayment plan that they and their attorney create. If this sounds like a good fit for you, the Sherman Oaks Chapter 13 bankruptcy lawyers at Wadhwani & Shanfeld can help you gather documents and file for bankruptcy. Call us today at 899-996-9932 for a free consultation. You should not be forced to foreclose on your home due to circumstances out of your control.